Articles by Chris Thompson

Paladin Energy (ASX: PDN) is facing hurdles in its attempt to acquire Fission Uranium (TSX: FCU) for C$1.14 billion. While the deal would create a global uranium leader, Chinese state-backed CGN Mining Company, which owns an 11.26% stake in Fission, has opposed the acquisition in court. The Supreme Court of British Columbia will make a final ruling on September 26. If successful, Paladin would gain access to Fission‘s Patterson Lake South project, significantly expanding its uranium footprint across Canada, Namibia, and Australia. The court’s decision will shape the future of this strategic acquisition. [more]

Gold Fields (JSE: GFI) has announced an agreement to acquire Osisko Mining (TSX: OSK) in an all-cash transaction valued at $2.16 billion. The acquisition, which includes the Windfall Project in Quebec, enhances Gold Fields’ portfolio by adding a high-grade gold development asset in a stable region. Osisko shareholders will receive $4.90 per share, representing a 55% premium to the 20-day VWAP as of August 9, 2024. The transaction is expected to close in Q4/2024, subject to regulatory and shareholder approvals. [more]

We have written a 17-page Update Report on DATA Communications Management (DCM) after it released Q2/2024 financials. DCM is a Canadian-based communications and marketing solutions provider. Revenue increased 5.7% to $125.8 million, though below our estimate due to deferred client projects. The company remains focused on completing the integration of Moore Canada Corporation by year-end and achieving annualized cost savings of $30 to $35 million. DCM‘s strategic initiatives target improved gross margins and revenue growth, particularly through technology-enabled solutions, including its new Digital Asset Management (DAM) solution called ASMBL. Focused on the merger integration, DCM reported a 22.2% increase in Adjusted EBITDA to $16.9 million. [more]

Former President Donald Trump has outlined significant cryptocurrency policies aimed at positioning the U.S. as a global leader. Central to his platform is the creation of a “strategic Bitcoin stockpile,” filled with Bitcoin acquired through legal seizures. Trump also proposes a pro-crypto regulatory environment, including the establishment of a presidential advisory council on cryptocurrency and the appointment of a crypto-friendly SEC chairman. These proposals align with Trump’s broader economic agenda and have garnered support from key Silicon Valley figures. However, they also raise concerns about market volatility and the potential risks of reduced oversight. [more]

Lundin Mining (TSX: LUN | NASDAQ: LUMI) and BHP Group (ASX: BHP) have announced a $4.1 billion acquisition of Filo Corp (TSX: FIL). On a copper equivalency basis, the deal values the Filo del Sol project at US$0.33 per pound. The deal forms a joint venture focused on the Filo del Sol project in Chile and the Josemaria project in Argentina, aiming to develop these major copper sites. This partnership strategically positions both companies to address the increasing global demand for copper, driven by the transition to renewable energy. The transaction is expected to close in Q1/2025, pending regulatory approvals and other conditions. [more]

In this short video, Chris Thompson of eResearch discusses DCM and eResearch’s 16-page Equity Research Report that covers an in-depth analysis of DCM’s Q1/2024 financial results. [more]

We have written a 16-page Update Report on DATA Communications Management (DCM) after it released Q1/2024. DCM is a Canadian-based communications and marketing solutions provider. Revenue increased to $129.3 million in Q1/2024, up 69.9% from $76.1 million in Q1/2023, but lower than our estimate of $139.0 million. Revenue fell short of expectations mainly because several projects from larger clients were postponed to later quarters this year. DCM reported Adjusted EBITDA of $18.7 million in Q1/2024, an increase of 46.2% from $12.8 million in the same quarter last year. The EBITDA growth reflects the positive impact of the MCC acquisition and ongoing efforts to improve margins and reduce expenses. [more]

Permira Advisers is acquiring Squarespace Inc. (NYSE: SQSP) in a $6.99 billion all-cash transaction, reflecting a premium to the market price and comps. This deal, endorsed by the board, signifies a shift for Squarespace towards enhanced strategic flexibility away from public market pressures. With an EV/Revenue multiple exceeding the mid-cap SaaS sector average, the acquisition underscores Squarespace‘s market position and growth potential. [more]